Professional Writing

Tech Shortage EV Impact

Automotive Technician Shortage – What will be the Impact of the EV Revolution?

Any new car dealer will tell you that talent retention is typically a challenge, specifically in the service drive of the dealership. The pool of qualified auto technicians in the industry has been dwindling for quite some time and the pandemic wreaked havoc on an already waning supply. The so-called “great resignation” coupled with a mass exodus of baby boomers retiring from the industry has created an even larger vacuum.

The industry is predicted to be short over 600K automotive, collision, and diesel technicians between 2020 and 2024. The baby boomer generation alone is anticipated to leave a deficit of over 100K techs upon retirement in the next decade or so.

BAR Finalizes Vehicle Storage Regulations

The Bureau of Automotive Repair (BAR) has finalized amendments to its vehicle storage regulations package after multiple workshops. The regulations will establish new registration, disclosure, and customer notification requirements for automotive repair dealers (ARDs) that charge vehicle storage fees following accident-related repairs or the recovery of stolen vehicles.

Under the regulations, “vehicle storage” will be defined as an ARD’s possession of a customer’s vehicle upon completion of repairs, or when repairs have not been performed, as referenced in Business and Professions Code section 9880.1(k).

Covered Battery-Embedded Products (CBEP)

The California Department of Tax and Fee administration (CDTFA) has confirmed with CNCDA that dealers selling “covered battery-embedded products” (CBEP) retail over the parts counter must register with the CDTFA and remit the fee for qualifying products. CBEPs are essentially products that contain batteries that are not easily removed with common household tools.

The new requirement only applies to dealerships via their parts counter operations as dealership vehicle sales and service operations are exempt. For example, a TPMS sensor installed by a dealer technician during a tire service falls within the vehicle exemption, but the same TPMS sensor sold as a boxed part to a retail customer over the parts counter is subject to the fee. Non-taxable wholesale transactions are also exempt from this requirement, such as sales to other stores or auto shops.